Open enrollment is not just about choosing employee benefits. It is a high‑stakes compliance checkpoint for your business. Miss a reporting deadline, send the wrong notice or overlook a required disclosure and you risk penalties, legal exposure and loss of employee trust. For small and medium‑sized businesses (SMBs) where resources are tight and regulations keep shifting, the margin for error is narrow.
That is where PrestigePEO, a professional employer organization (PEO), comes in. Our compliance specialists, secure technology and proactive processes work together to help you meet every requirement on time with audit‑ready documentation. From federal mandates to state‑specific rules, we make compliance one less thing to worry about so you can focus on running your business.
Key Compliance Requirements SMBs Must Get Right (and How PrestigePEO Supports You)
Each requirement carries deadlines, documentation rules and real consequences for non‑compliance. Below are the core areas every SMB must address and how PrestigePEO helps you get them right.
ACA Employer Mandate and Reporting (ALEs Only)
The Affordable Care Act (ACA) imposes employer shared responsibility rules on Applicable Large Employers (ALEs) with 50 or more full‑time employees, including full‑time equivalents. ALEs must offer affordable, minimum‑value coverage to full‑time employees and dependents, deliver Form 1095‑C to employees and file with the IRS on required timelines. Penalties for non‑compliance are significant and adjusted annually.
Non‑ALE employers still have ACA‑related obligations, including the 90‑day waiting period limit, Summary of Benefits and Coverage (SBC) distribution and HIPAA special enrollment rights.
PrestigePEO tracks ALE status, affordability and minimum value, supports ACA reporting and filing for ALE clients through our systems and coordinates required notice delivery to reduce penalty risk.
ERISA Compliance Requirements
Under the Employee Retirement Income Security Act (ERISA), plan sponsors must provide Summary Plan Descriptions (SPDs), Summaries of Material Modifications (SMMs) when changes occur and maintain accurate records.
If your employees are covered under PrestigePEO‑sponsored employee benefit plans, PrestigePEO acts as plan sponsor and manages SPD and SMM content, timing and distribution with secure recordkeeping.
If your company sponsors its own plan, PrestigePEO provides templates, guidance and distribution support to help you meet ERISA requirements.
HIPAA Privacy and Security Obligations
Open enrollment is a peak period for handling protected health information (PHI). HIPAA violations can be costly and enforcement penalties are adjusted annually by the U.S. Department of Health and Human Services (HHS).
PrestigePEO’s PrestigePRO platform is designed to support HIPAA compliance with encryption, role‑based access controls and audit logs so data remains secure and traceable from submission to storage.
State‑Specific Employee Benefit Rules
Beyond federal obligations, states impose their own rules around continuation coverage (or mini-COBRA), mandated benefits, waiting periods and required notices. Multi‑state employers face additional complexity. PrestigePEO monitors state updates, tailors communications and aligns eligibility and notice timing to each jurisdiction.
Employee Notifications To Distribute During Open Enrollment And Beyond
Certain employee benefit communications are important for keeping your team informed and helping your business meet compliance obligations. These notices are part of the ongoing benefits administration process that PrestigePEO supports for clients:
- Summary Plan Description. Overview of the benefits plan provided under ERISA, given to participants within specific timeframes.
- Summary of Benefits and Coverage. Snapshot of health plan coverage and costs.
- Summary of Material Modifications. Updates to the SPD when there are changes to the plan.
- COBRA Initial and Election Notices. Information about continuation coverage options when applicable.
- HIPAA Special Enrollment Rights Notice. Explains opportunities to enroll in coverage outside of open enrollment.
- CHIPRA Premium Assistance Notice. Information about premium assistance under Medicaid or CHIP.
- Women’s Health and Cancer Rights Act (WHCRA) Notice. Information about mastectomy-related benefits.
- Medicare Part D Creditable/Non-Creditable Coverage Notice. Details whether prescription drug coverage is creditable compared to Medicare Part D.
- Newborns’ and Mothers’ Health Protection Act (NMHPA) Notice. Explains protections for hospital stay lengths in childbirth.
- Wellness Program Disclosure Notices.: Describes participation terms, incentives and privacy protections for workplace wellness programs.
We prepare, format and deliver these communications according to applicable timing and content guidelines, whether your workforce is in one state or multiple. We also track updates from federal and state agencies and store delivery records so you have proof on hand in the event of a review or audit.
Data Privacy and Compliance Controls During Enrollment
Open enrollment generates high volumes of sensitive data. PrestigePEO builds protection into every step:
- Encryption at rest and in transit to minimize exposure risk.
- Access controls and authorization protocols to keep PHI restricted to authorized users.
- Activity logging and audit trails for transparency and audit readiness.
- Platforms designed to support HIPAA compliance so PHI remains protected from submission to storage.
PrestigePEO as Your Compliance Assurance Partner
Navigating open enrollment compliance is about protecting the operational and legal health of your business. PrestigePEO acts as an extension of your team, taking on work that would otherwise strain your time and resources.
- Continuous regulation monitoring across federal and state rules.
- Audit‑ready documentation for ACA reports, COBRA notices and more.
- Proactive compliance reviews before and during open enrollment.
- Dedicated specialists who provide guidance tailored to your operations and industry.
Compliance Support That Protects Your Business with PrestigePEO
Open enrollment compliance is a legal obligation with real financial and reputational stakes. PrestigePEO delivers the tools, processes and expertise to help you stay compliant while reducing administrative burden.
Schedule a consultation to protect your business from compliance risk and give employees confidence in their employee benefits.
